1. Calculate the following financial ratios:

Current Ratio:

Debt to Owners Equity Ratio:

Return on Sales:

Return on Equity:

Earnings Per Share:

Would you invest in Acme Baking Company?

Acme Baking Company Statement of Income Year Ending December 31, 2019 REVENUES Net Sales Other income Total revenue $4,090,970 +104,227 $4,195,197 COST OF GOODS SOLD $2,673,129 GROSS PROFIT (GROSS MARGIN) $1,522,068 OPERATING EXPENSES Total Selling Expenses Total General Expenses Total Operating Expenses $333,300 +$306,036 $639.336 NET INCOME BEFORE TAXES $882,732 Income Tax Paid (25%) $220,683 NET INCOME AFTER TAXES $662,049 Acme Baking Company Balance Sheet December 31, 2019 ASSETS Current Assets Cash Marketable Securities Accounts Receivable Notes Receivable Inventories Prepaid expenses and other Current assets Total Current Assets $280.928 514,800 108,694 855,771 218.156 88.237 $2,066,586 Fixed Assets Land Plant and Buildings Equipment Total Fixed Assets $510,000 1,016.201 218,500 $1,744,701 Other Assets Goodwill, net Total Other Assets $49.930 $49.930 TOTAL ASSETS $3,861,217 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $226,977 Accrued expenses and other 380,496 Current liabilities Current portion of finance debt 382,579 Total Current Liabilities $990,052 Long-Term Liabilities Notes Payable Bonds Other long-term liabilities Total Long-Term Liabilities $228,772 380,000 29.478 $638.250 Total Liabilities $1,628,303 $389,538 Owner's Equity Common Stock (342,196 shares outstanding) Retained Earnings Total Owner's Equity 1.843.377 $2.232.915 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY S3,861.217